Westpac IQ

Friday edition: analysis and forecasts for this week's key releases.

Monday re-issue edition: analysis and forecasts for this week's key releases.

Friday edition: analysis and forecasts for this week's key releases.

Insights from Westpac's W Talks Scale-Up Decade events, presented in partnership with Bernard Salt AM.

Spring is here, and so is the latest edition of our quarterly Sustainable Finance newsletter. This quarter, we shine a light on the agriculture sector and how the Australian Sustainable Finance Taxonomy can support more sustainable farming practices. We also cover recent transaction highlights, key market developments, including the latest on data centres, and how one organisation is helping to ensure First Nations communities have a seat at the table as Australia’s energy transition continues.

The energy industry faces a new challenge as the surge in household battery uptake gives consumers more control over when they store, use and export electricity.

The Australian dollar has been steadily finding its feet since mid-October, helped along by a more hawkish turn from the RBA. Last week’s hotter-than-expected September CPI, coupled with Governor Bullock’s warning that upside inflation risks are starting to materialise, kept AUD/USD comfortably above 0.70, although the 50-day moving average around 0.7067 remained a firm ceiling. The Aussie has had a sleepy start to what could be a decisive week, with the RBA meeting and updated Statement on Monetary Policy, US mid-term elections and nonfarm payrolls all on the calendar.

The Australian dollar faced plenty of headwinds last week. Growing concerns about AI-related spending, Brent crude pushing up to US$113/bbl, and ongoing fiscal and political uncertainty in France sent French bond yields to multi-year highs and left investors in a more cautious mood. Looking ahead to what will likely be a decisive and event-heavy week, markets will hear from RBA Governor Bullock and other RBA officials shortly ahead of local Sep CPI (Wed), before attention turns to a run of central bank meetings; RBNZ & FOMC (Wed), ECB (Thur) and BoJ (Fri).

It started out calmly enough for the Australian dollar last week, comfortably trading on the 0.69-handle and even very briefly pushing above 0.70c just ahead of US Sep CPI. But a stronger print, followed by softer Australian labour data Thursday and AI volatility, upset the Australian dollar's calm demeanour sending it to 0.6894, its lowest level since July. The Australian dollar has since steadied and we start the new week trading back above 0.6950. On the calendar this week; RBA Deputy Gov. Hauser speaks (Wed), NZ Q3 CPI (Thu), we receive preliminary global Oct PMIs and US big tech earnings.